Ontario raises minimum wage to $11(Canadian) an hour

Well my mistake. But I’ll point out that we have not seen a significant problem from raising the minimum wage. But, we have seen the benefits of doing so. I should also point out that any talk of keeping or even lowering the minimum waqe has evaporated. So much for this debate.


Well thanks for sharing your story. But that is not what this discussion was about. It was about the minimum wage keeping up with the rising prices.

If you are puzzled by this. Look at the various articles, and studies which indicate the tremendous increase in corporate profits.


There is nothing puzzling at all here.
Read the thread.

There are posts here that deny a relationship between a minimum wage increase and an increase in costs.

Increases in cost are certain. It’s increases in wages that we struggle for.

If prices go up independent of the minimum wage, then how does an increase in the minimum wage make people worse off? I mean if prices go up it is clearly better to make $10 an hour rather than $9 an hour.

That depends.

If minimum wage goes up, the cost of goods in services go up as well.

So is it better to earn 10 per hour with one set of prices or 11 and hour for a higher set of prices?

For those at minimum wage, at best it does not effect much as their increase will go toward the increased cost.
But for those that do not earn minimum wage, it effectively reduces their pay as they no longer have the buying power they once had.
The very rich also get reduced buying power, but likely can afford it.

Who are we hurting here?

You are simply twisting the facts to support your argument. A failed argument at this point.

Costs have continued to rise, the wage is being raised to play a little catch up. No one thinks the lower wage earners will have caught up, or anything of the sort. This move will only provide a small amount of relief. Honestly it is the very least we can do for them.


Inflation increases monthly without any increase in the minimum wage. You don’t need to increase minimum wage to have inflation increase. But minimum wage should be increased annually to match the CPI.

However some people wanted the minimum wage to be $14 an hour trying to make it into a living wage which would be too much as the minimum wage was never meant to be a living wage.

What good does it do to provide a higher paycheck if it doesn’t provide increased buying power?

Who says it has to increase buying power? Increasing minimum wage helps to maintain the buying power lost through inflation.

It is well established that inflation increases independent of any minimum wage. When inflation goes up so too do the revenues for the businesses. The buying power lowers because everything has already increased.

The minimum wage increase when increased by the inflation rate since the last time it was increased maintains that equal buying power.

If the dollars do not go further, what is the point in increasing their number?
All you are doing is increasing the size of a paycheck, but not providing for that increase to do anything.

No one disputes that there are other factors that contribute to inflation.
An increase in minimum wage is one of them.

One cannot legislate people into prosperity.

Prices have already gone up because of the wild weather. Everyone except minimum wage workers received a cost-of-living increase at the beginning of January, as well as a Christmas bonus in December. It is only fair to give an increase to minimum wage workers, as well, to allow them to catch up to rising prices, as well.

Raising the minimum wage doesn’t have near the effect on prices as the increases and bonuses given to the people at the top - that’s where you see the really high numbers that someone - meaning the customer - has to cover, by means of price increases. And you can bet your last paycheque that nobody in management is going to go without his raise and Christmas bonus just so prices can stay the same this year.

Let put it another way. Say for example in 2012 that minimum wage is $10/hour for nice round numbers. CPI puts ordinary purchases at $100 for same year. A year later the CPI goes up $105. 5% increase for the same goods that we all have to buy. Without a 5% increase the person on minimum wage has less purchasing power.

Stinkcat who has his doctorate in Economics seems to disagree with you.

Increasing minimum wage responsibly is not legislating prosperity by a long shot.

Everyone? Really?

I would rather be given a raise based upon the merits of my work then on ‘fairness’

I disagree with your endeavor to set up an ‘us against them’ with management.
I feel it smacks of jealousy rather then logic.
But your overall concept of rising costs is correct. Management of any business is not going to let their profitability take a hit. If their payroll goes up, you can bet the additional cost will be passed on to the customer.
And that will hurt the middle class.

You are assuming that prices go up because of the minimum wage. There is no real economic evidence that suggests that. About 2% of the workforce earns the minimum wage and they get the smallest component of labor income. Given that prices will go up anyway it clearly better to earn more than less.

You do not believe a 5% increase in the minimum wage is going to result in inflation?

I am assuming that. Practical experience has shown me that this is the case much of the time.

No. As Milton Friedman used to say, inflation is always and everywhere a monetary phenomenon.

What is going to have a bigger effect on the price level: An increase in the minimum wage, or increases in the 98% of people who earn more than the minimum wage?

An increase in the minimum wage will likely increase those making minimum wage.
Not increase those earning more.

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